Racial and Ethnic Disturbances

The appearance of racial, ethnic and religious disturbances in big cities, particularly in Karachi and Hyderabad, has slowed down the growth of the manufacturing sector in the country.

Fear of Nationalization

The pace of industrial investment has remained slow particularly after nationalization of industries during Mr. Z.A. Bhutto’s tenure in the government. Therefore, the present psyche of the capitalists is that they keep their own capital safe and try to invest borrowed capital for installation of new industries. A political consensus is required on the policy of privatization to settle the issue.